Munich, Germany – Tire pyrolysis company Pyrolyx AG has recently started insolvency proceedings, the company revealed in a statement canceling an extraordinary general meeting scheduled for 15 Jan.
“On 4 December 2020, the company filed with the Munich District Court under file number 1507 IN 2125/20 for the opening of insolvency proceedings,” the recycled carbon black (rCB) manufacturer explained.
“The court-appointed insolvency trustee does not see himself in a position to give its consent to payments in connection with the AGM,” it added. “It is therefore impossible… to hold the extraordinary general meeting.”
As of 4 Jan, the company had not provided any update to investors about the progress of the insolvency process via its website.
Last November, the tire pyrolysis company placed its Terre Haute, Indiana unit in the US into bankruptcy, adding that it was reviewing “the viability of its entities” following a failure to raise capital for a major restructuring plan.
The bankruptcy filing, on 28 Oct, followed the withdrawal of support by “cornerstone investors” for a plan to restructure company debt.
The rCB production plant in Terra Haute had been shut since 23 March, following the imposition of Covid-19 lock-down measures in Indiana.
Pyrolyx had previously announced a five-year deal with Continental for the supply of up to 10 kilotonnes (kt) of rCB a year to the tire maker’s production facilities worldwide.
The rCB was initially to have been supplied both Pyrolyx’s plants in Stegelitz, Germany and the US facility in Terre Haute, with new capacity to be added in eastern Europe in 2021.
The agreement had been expected to absorb over 3 million end-of-life tires and to reduce annual CO2 emissions by more than 25kt compared to using traditional carbon black.